As prices for new condos in the Miami area continue to soar, the area is one of the hottest real estate markets in the world.
A new report says the area’s condo market has the potential to bring in as much as $150 million annually.
The report, from Trulia, says Miami is home to some of the highest-priced residential real estate in the country.
And it says that could be due in part to its proximity to the nation’s financial centers.
For example, it says Miami has some of America’s best-performing commercial real estate, including a median price of $1.6 million per square foot.
The real estate boom has brought an influx of buyers and renters into the city, and a few major condo towers are under construction, according to Trulia.
Miami-Dade, Broward, Palm Beach and Miami-Fort Lauderdale are the areas where Trulia says the average condo price rose fastest over the past year, rising by more than 17 percent in the past 12 months.
But there are some caveats, Trulia said.
Many of the new condo projects in the area were built to meet stricter guidelines for development, and the average sales price of a condo rose just 2.4 percent in that time frame.
“Even if condos are getting priced out, we think that the number of buyers who would purchase condos at $400,000 to $500,000 is quite small,” said Trulia’s Brian Shoup.
The condo market also appears to be buoyed by a new luxury condominium boom.
A survey by Trulia found that more than half of the condos in Miami-dade and Broward counties are owned by foreign buyers.
According to the survey, condo sales increased 11 percent in Miami in the year ended March 31, and there were 1,621 condos in Broward County.
The city’s condo sales also increased by 8 percent in Palm Beach County, where the market is booming.
And the city of Fort Lauderdale has seen condo sales increase by 15 percent in just the past month.
However, some condo buyers say that while the condo market is in great shape, the real estate market is still a lot different.
“There is a big difference between buying condos, and renting,” said David Lutz, vice president of real estate development for RE/MAX, which owns condos in Fort Lauderdale and Miami.
“The way it works now is the first step is to buy the property, then you rent it.
It’s a little different.
I think that is a lot of the reason for the lack of sales,” Lutz said.
Trulia is not the only real estate research firm that has pegged the condo boom in Miami.
Another, RE/Max, also released a report earlier this month.
It said that condo sales are expected to double in Miami by 2020, but that the market could fall by another 25 percent by 2025.
That would bring the number out to 1.9 million homes in the city and nearly 2 million in Browards.
Trubal, however, said that the condo bubble could be short-lived.
For one, the median price for condos in Florida fell by 6.6 percent over the last year, Trubolaids Trulia report said.
For another, there is more demand for condos now than ever before, which has helped boost prices in the market.
And because there is so much more demand, Trubs condo sales have risen by 15 to 20 percent annually, Trumba said.
But Trubulaids report also points out that the median home price in the United States has remained relatively flat since 2011, and Trubulia predicts that condo prices will remain flat in Miami for the foreseeable future.
And Trubula is not sure if condo prices in Miami will continue to increase.
Trumulia has found that the average home price for new condo units has fallen by just 1.6 to 2.9 percent over that time period.
And while Trulia expects condo sales to continue to climb, it is not saying when or if the condo surge will end.
Trumbula said Trubules condo bubble may be short lived.
The study said Trumbuls condo bubble is short-term, but Trubulum believes that condo development will not last forever.
“For most people, their condo purchase is going to be a one-time event.
And as they get more experienced in their condo, they will have more and more experience in their real estate business,” Trumbulaid said.
The Trubulars report comes as condo developers are preparing to start construction on new projects in Miami, Browards and Palm Beach.
In Florida, there are more than 50 projects in development, with more than a dozen more expected to come online by the end of the year, according the Miami Herald.
Trumbo said that many condo developers want to build new homes in areas with more demand.
But he said it is also important to recognize that there